TERMS FOR USE OF GS1 BARCODE NUMBERS

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1 TERMS FOR USE OF GS1 BARCODE NUMBERS 1. Definitions: a. GCP refers to the sequence of numbers allocated by GS1 India to the Applicant company, which begins with 890 (country code), followed by numerical digits representing a company code. b. Intellectual Property includes, but is not limited to, the technologies, sequencing of codes, and other programs used by GS1 India to assign the GCP. Further the sequence representation, the pattern of vertical lines & white spaces using the GCP are representations/symbols belonging exclusively to GS1 India. c. Applicant Company refers to the applicant of the GCP and is the Company to whom the GCP is allocated, pursuant to the terms and conditions set out by GS1 India hereunder or otherwise. d. Products refer to the specific goods, items, packaging, etc. on which the Applicant Company is affixing the graphical representation of the assigned GCP which bears 890 as the first 3 digits. e. Fee refers to the fees payable by the Applicant Company to GS1 India for the right to use the GCP. The fee paid to GS1 India is non refundable except for the interest free refundable security deposit amount. Procedure for reimbursement of security deposit amount after can cancellation/termination of subscription with GS1 India is as per Annexure I. f. Taxes/duties on the fees payable (one time registration fee & annual fee) shall be in addition to the applicable fees and shall be as per prevalent Government rules. g. Term refers to the initial period as specified at the time of granting the licence/rights to use/affix the GCP. The licence is subject to renewal each year/as specified time to time by GS1 India for the right of its continued use. 2. Recitals GS1 India is the sole owner of the GCP allocated. The Applicant Company is being provided with a revocable privilege to use the GCP. Further, GS1 India is authorized to grant such rights in allocating GCP numbers within the territory of India, Nepal & Bhutan, and at its sole discretion, to the applicant, in accordance with the conditions set out hereunder and other provisions that may be drafted from time to time. 3. Consequences of Misuse GS1 India has taken protection against unauthorized use of 890 with barcode under the Trade Marks Act Unauthorised use means, use of 890 with barcode by any company without registering with GS1 India or had previously registered with GS1 India but has discontinued (cancelled/terminated/revoked) at a later date due to any reason.

2 a. If a company that had previously registered with GS1 India and has discontinued (cancelled/terminated/revoked) later on, due to any reason, and continues to use the GCP after its discontinuation, such defaulted company(s) will have to pay all outstanding dues till date from the date of cancellation/termination of subscription, costs incurred by GS1 India towards litigation/investigation, and a penalty of Rs. 10,000/- If they wish to continue to use the GCP, then the full fee towards registration as new subscriber, for the same prefix will also need to be paid. b. If a Company that has never registered with GS1 India, illegally uses a GCP, shall be required to pay the requisite fee towards the allocation of the GCP, the Annual Renewal fee from the date of commencement of the Company (business) or 1996 whichever is later, costs incurred by GS1 India towards litigation/investigation, and a penalty of Rs.20000/-. 4. Grants GS1 India grants a license/rights to use the GCP for generating GS1 identification keys and their graphical representations, for use in accordance with the terms set out and any other provisions expressly or impliedly communicated to the Applicant Company. Further, the GCP allocated to the Applicant Company is based on information provided by him in the registration form regarding the number of different product types (SKUs) manufactured/ supplied. For additional product numbering capacity, if desired at a later date, due to the addition of new product types/variants/skus; a fresh application/registration form for a GCP, will need to be submitted by the Applicant Company to GS1 India along with requisite fees applicable at that time for the additional capacity desired 5. General a. GCP granted shall be valid for the period as specified at the time of allocation. The Applicant Company needs to renew its GCP each year to continue using it for generating GS1 identification keys. b. GCP granted shall be used for generating a unique GTIN for each product. Details of each product, its images etc. shall be uploaded to GS1 India s portal. Responsibility for the accuracy of data uploaded to GS1 India s portal lies with the Applicant Company. The details so uploaded would be accessible to consumers/retailers etc. via e-digital media. c. GS1 India reserves the right to fix the annual renewal fee for each year and the subscriber (Applicant Company) is required to pay the same in full and in advance for the subsequent year. 6. License fees In consideration to the GCP allocated by GS1 India, the Applicant Company shall pay the License/Rights Fee to GS1 India in full and in advance. Part payment will lead to withdrawal/revocation of the licence, resulting in termination of subscription. The Applicant Company shall, before the expiry of each term, receive a renewal letter for its licence for another term, as specified time to time. The Applicant Company needs to renew its subscription to continue using the GCP failing which, the use of the GCP or its graphical representation, will constitute a violation of the licence terms, which may invite legal action 2

3 by GS1 India as deemed fit. The Applicant Company shall also be liable to pay any additional/revised charges that may be asked for by GS1 India. 7. Applicant Company s obligations as to conformity of directions of GS1 India a. The GCP is allocated to the Applicant Company for the period as per the terms and conditions. b. The Applicant Company shall adhere to all instructions/directions pertaining to the use of the GCP. The Applicant Company must at all times act in good faith and perform functions to its best effort to ensure the proprietary rights of GS1 India. The Applicant Company shall also adhere to the technical specs as set out by GS1 and made available from time to time. 8. Use and Protection of Intellectual Property and GCP a. The Applicant Company regards the GCP and the Intellectual property related thereto as the sole property of GS1 India. The Applicant Company acknowledges that the right to allocate GCPs is exclusive to GS1 India and it shall not attempt to act in any contrary manner. b. The Applicant Company does not have the right to pass on/assign the GCP/Intellectual Property of GS1 India. The goodwill generated or any other rights that accrue by the use of the GCP/Intellectual Property of GS1 India, shall at all times, belong to GS1 India exclusively. c. The Applicant Company under all circumstances shall promptly call to the attention of GS1 India, the use of any Intellectual Property or GCP, by any third party or any such activities of third parties, which in the opinion of the Applicant Company amounts to infringement of the legal rights of GS1 India, whenever the infringement i noticed by the Applicant Company. 9. Warranties and Representations a. Each Applicant Company warrants that it shall use the GCP only for the Company to whom it has been allocated, and not for any of its sister concern, subsidiaries etc. The Applicant Company warrants that it shall not use the name, GCP, or other forms of identification of GS1 India as its own or refer to as associated with, its own name/products. Further, the Applicant Company shall not lease/pass on/rent the rights granted. b. The Applicant Company warrants that it shall not use the GCP if it has failed to comply with the terms of use or pay the requisite license/rights fee. In case of continued use, the Applicant Company accepts to be legally liable to GS1 India for unpaid license/rights fee, damages and any other amounts that may be levied by GS1 India. c. The Applicant Company shall help/assist GS1 India by providing information, details, data, etc. towards provisions of Clause 9, to ensure proper use of the rights/gcp allocated. d. The Applicant Company warrants that in case there is any change to the product for which the GCP was assigned, or there is a change in the constitution/structure of the 3

4 Applicant Company etc., then it shall provide all information within 10 working days to GS1 India. The Applicant Company agrees to pay any additional money or abide by any additional terms that GS1 India may impose to effect such changes. e. In the event of any change in the name, legal status or ownership of the Applicant Company as well as brands (belonging to the Applicant Company) at alater date, or any disputes on the same, the same would need to be informed to GS1 India, who at its discretion, would be free to decide whether the GCP allocated can be used by the new entity or whether the same is revoked and a fresh registration is war ranted for the allocation of a new GCP at a fee, as applicable. f. The Applicant Company warrants that it will be bound by the terms and conditions with respect to Clause 11 even after the termination or when the Applicant ceases to be a Subscriber. 10. Action against third parties GS1 India shall have the exclusive right to take all/any action against third parties with respect to violation of IP rights, and if required, the Applicant Company shall co-operate fully with GS1 India in any such action, in all manner possible. In the event of any disputes related to ownership of the GCP allocated by GS1 India, GS1 India shall be the sole arbitrator and its decision shall be final & binding. 11. Termination a. Termination for breach: GS1 India is entitled to terminate the licence/rights after giving notice of termination, when there is failure on the part of the Applicant Company to make payment of license/rights fee, or failure on the part of the Applicant Company to perform its obligations or the disqualification of the Applicant Company from being able to perform responsibilities such as liquidation, windingup, death, etc. or any change in ownership, constitution, directors, etc. of the Applicant Company, that is not informed to GS1 India, for which GS1 India has not given any written assent. b. Voluntary termination: GS1 India may unilaterally revoke the rights granted to the Applicant Company with respect to use of the GCP, by sending appropriate notice, if it has reason to believe that the Applicant Company has not been adhering to the standards prescribed, is acting in a detrimental manner towards the interest of GS1 India, is acting contrary to the general business practices or norms of the Trade, or is involved in any such similar activity. The Applicant Company can also voluntarily terminate the agreement by sending a written intimation to this effect to GS1 India. c. On termination, the Applicant Company shall forthwith pay GS1 India all amounts due pertaining to outstanding dues against the Applicant Company as per the records of GS1 India. 12. Consequences of Termination Upon termination, the Applicant Company shall discontinue the use of the GCP and all other forms of rights/representations granted by GS1 India with immediate effect. Any needful continuance must be approved in writing by GS1 India. The allocation of the GCP, the graphical representation, and other rights granted, shall stand revoked upon termination. Further, the Applicant Company must ensure the proprietary 4

5 rights of GS1 India are protected irrespective of the surrender, and that all use of rights granted is stopped consequent to the termination. 13. Indemnity The Applicant Company shall indemnify GS1 India against all claims, costs, damages and expenses, which GS1 India may suffer or sustain as a result of the actions by the Applicant Company. All precautions have been taken by GS1 India while allocating the GCP to the Applicant Company. However, in the event of any fault in allocation of the GCP by GS1 India, liability of GS1 India shall stand limited to the amount (fee) paid by the Applicant Company to GS1 India at the time of allocation. 14. Miscellaneous a. No waiver and severance: There will be no waiver by GS1 India to any of the Applicant Company s obligations, unless made in writing. Nor any waiver by GS1 India in respect to any breach be deemed to constitute a waiver of, or consent to, 5 any subsequent breach(s) by the Applicant Company. In the event that any provision is declared by any judicial or other competent Authority to be void, voidable or illegal, the remaining provisions shall continue to apply, unless GS1 India in its sole discretion, decides to do otherwise. b. Governing Law shall always be the laws of the Republic of India and every interpretation will be deemed to be made in India. The jurisdiction in all matters of dispute shall lie exclusively with the Courts in New Delhi. c. Change of Address: Each of the parties shall give notice to each other on change/acquisition of a new business address within 7 (seven) working days of such change. Any failure on the part of the Applicant Company to inform GS1 India of any change in address, shall constitute a violation that can consequently lead to termination of licence/rights at the discretion of GS1 India. 5

6 Annexure I Procedure for reimbursement of Interest-free refundable security deposit after cancellation/termination of GS1 India subscription. 1. A letter on company letterhead, requesting a refund of the interest-free refundable security deposit of Rs.3000/-. 2. Subscriber needs to submit an affidavit on Rs.10/- non judicial stamp paper to GS1 India. 6

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